AMD (AMD) reported his Fourth quarter After the bell on Tuesday, defeating expectations on the upper and company rules and offering a better-this-softening Q1 prediction.
The announcement of the chip maker comes on the same day that President Donald Trump has set a rate of 10% on goods made in China and just over a week after the Deepseek established in China rocked the technical world with its cheap AI models.
Despite the income Beat and stronger guidance, AMD shares fell more than 3.5% on the trade after hours.
AMD fights to take market share in the AI room of rival Nvidia (NVDA), which dominates the sale of powerful AI chips. At the same time, the company fights with a continuous delay in PC sales, even if the industry works to push consumers and companies to AI PCs -computers with specialized processors designed to provide AI tasks with electricity.
For the quarter, AMD reported profit per share (EPS) of $ 1.09 with a turnover of $ 7.56 billion. Wall Street expected a profit per share of $ 1.09 and the turnover of $ 7.5 billion, according to Bloomberg’s estimates. The company’s data center activities, the largest segment per turnover, raised $ 3.9 billion, just shy by the expectations of $ 4.09 billion for the quarter.
AMD’s client segment, which contains chips for PCs, generated $ 2.3 billion for the quarter. Analysts expect a turnover of $ 1.98 billion. The company also saw gaming income of $ 563 million. Wall Street was looking for $ 487 million.
For the current quarter, AMD anticipates a turnover between $ 6.8 billion and $ 7.4 billion. Wall Street had expected $ 7.0 billion.
AMD shares have made an effort over the past 12 months and 33% have fallen compared to rival Nvidia, which has risen 80%. Yet that is better than Archnemesis Intel (Intc), in which shares fall by 54% in the same period.
Although Trump’s rates on the Chinese goods do not influence most of the high-end chip market, many will be manufactured in areas such as Taiwan, the wider market for electronics, including servers and PCs, built in China, are affected.
Read more: What are rates and how do they influence you?
If companies and consumers are eliminated by higher prices on those systems and devices, chip manufacturers such as AMD can be confronted with delaying sales.
In addition to the rates for Chinese goods, Trump has also increased the ghost of rates that are specifically aimed at semiconductors and products that are linked to them in an attempt to bring production to the US. But those types of rates increase prices for consumers for a long time, because building chip facilities is a complex task that takes years to complete.